Find Out If You Qualify for These HVAC Tax Credits and Rebates

Published on April 12, 2016

Is it already tax season…again?!

Taxes aren’t top of everyone’s fun list, but what if you’re getting some dollars back? All American Air Service Experts Heating & Air Conditioning is bringing you the HVAC tax credits and rebates from EnergyStar® that you can earn in 2016 if you decide to upgrade your home to be more energy-efficient with one of these familiar systems.

Air Source Heat Pumps

You can earn up to $300 if you decide to invest in qualified air source heat pumps. To receive your HVAC tax credit or rebate, you must meet the following requirements:

Split System:

HSPF >= 8.5

EER >= 12.5

SEER >= 15

Requirements for package system:

HSPF >= 8

EER >= 12

SEER >= 14

Central Air Conditioning (CAC)

You can also earn up to $300 in tax credits and rebates if you invest in a qualified center air conditioning system. Below are the requirements for the HVAC tax credits and rebates on central A/C systems:

Split System:

EER >= 13

SEER >= 16

If you choose a package system:

EER >= 12

SEER >= 14

Gas, Propane, or Oil Furnaces and Fans

For approved gas and/or oil furnaces, you can earn up to $150 in tax credits and rebates for the furnaces or $50 in tax credits and rebates for advanced main air circulating fans. The requirements for the HVAC tax credits are below:

If you choose a furnace:

AFUE ≥ 95

If you choose a fan:

Annual electricity use ≤ 2% of total furnace energy

Water Heaters (non-solar)

For approved non-solar water heaters, you can earn up to $300 in tax credits and rebates. The requirements for the HVAC tax credits are below:

Qualifications for an electric heat pump:

Energy factor ≥ 2.0

For gas, oil, or propane:

Energy factor ≥ 0.82 or Thermal efficiency of at least 90%

Geothermal Heat Pumps

If you decide to go the geothermal heating route and choose a geothermal heat pump, which is more efficient since they use the earth’s natural heat, you can earn 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. Due to the variety of geothermal heat pumps, the requirements are broken down below:

Water-to-Air – Closed Loop:

EER >= 17.1

COP >= 3.6

Water-to-Air – Open Loop:

EER >= 21.1

COP >= 4.1

Water-to-Water – Closed Loop:

EER >= 16.1

COP >= 3.1

Water-to-Water – Open Loop:

EER >= 20.1

COP >= 3.5

Direct Expansion:

EER >= 16

COP >= 3.6

Solar Energy Systems

If you choose to invest in a solar water heater, you can also earn 30% of cost (no upper limits apply) back in HVAC tax credits and rebates. The requirements for this tax credit, as stated by Energy Star, state that at least half the energy generated by the qualifying property must come from the sun. The system must be certified by the SRCC (Solar Rating and Certification Corporation) or a comparable entity endorsed by the government of the state in which the property is installed. Furthermore, photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirements.

Please remember the HVAC tax credit and rebates do not cover swimming pools or hot tubs. Energy Star is clear that to be eligible for the tax credits, the water must be used in the home.

Keep in mind these HVAC tax credits and rebates only apply to existing homes and new construction that are principle residences or second homes. Rental properties do not quality for these credits and rebates. See below for acronym definitions:

HSPF – Heating Seasonal Performance Factor

SEER – Seasonal Energy Efficiency Ratio

COP – Coefficient of Performance

EER – Energy Efficient Ratio

Whew, that was SO MUCH information. For further information, visit EnergyStar’s website or visit the U.S. Department of Energy page for tax credits, rebates, and savings. If you want to upgrade your home this year, All American Air Service Experts Heating & Air Conditioning will help walk you through the options and choose the best heating and cooling system for your residence. Call today for your free in-home Home Comfort Analysis.

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